Firm-value effects of CSR disclosure and CSR performance

Item Type Conference or Workshop Item (Paper)
Abstract

We examine in this paper the effects of corporate social responsibility (CSR) disclosure and CSR performance on firm value for S&P 500 firms from 2011 to 2014. We find that CSR disclosure is positively associated with firm value and that the effect of CSR disclosure on firm value is larger than the effect of CSR performance. On average, the overall firm value increase for one index point of Bloomberg's environmental, social, and governance (ESG) Disclosure Score is $260 million, whereas the increase for one index point of the Asset4 ESG Performance Score is below $90 million. Moreover, we find that CSR performance scores related to the environment and governance are positively associated with firm value while the social score is negatively associated. Our results suggest that CSR disclosure mediates CSR performance. Based on prior research, we argue that CSR disclosure tends to be positively biased and too complex to be processed properly. We conclude that a relatively high amount of CSR disclosure is misinterpreted as good CSR performance.

Authors Gutsche, Robert; Schulz, Jan-Frederic & Gratwοhl, Μichael
Journal or Publication Title EFMA-Conference proceedings
Language English
Keywords corporate social responsibility; CSR, ESG; firm value; voluntary disclosure
Subjects business studies
Institute/School ?? TRADING ??
University of St.Gallen
?? 5749 ??
?? Inst ior/cf ??
?? STUDENT ??
?? GSK ??
?? SoM LA / UA ??
ior/cf - Institute for Operations Research and Computational Finance
HSG Classification contribution to scientific community
Date 30 June 2017
Publisher EFMA
Page Range 1-31
Number of Pages 31
Event Title EFMA Annual Meeting 2017
Event Location Athens
Event Dates Greece
Depositing User Prof. Ph.D Robert Gutsche
Date Deposited 20 Sep 2017 21:37
Last Modified 20 Feb 2018 01:21
URI: https://www.alexandria.unisg.ch/publications/251910

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Citation

Gutsche, Robert; Schulz, Jan-Frederic & Gratwοhl, Μichael: Firm-value effects of CSR disclosure and CSR performance. 2017. - EFMA Annual Meeting 2017. - Athens.

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https://www.alexandria.unisg.ch/id/eprint/251910
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